The document provides methodology details for compiling B2C e-commerce market reports for Kazakhstan. Secondary research is used to gather data from various reliable sources. Cross-referencing ensures data validity and reliability. Charts include sources and definitions. The reports include sections on trends, sales and market shares, users, products, payments, delivery, and leading players. Summaries are provided for each section.

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METHODOLOGY (1 OF 2)
 The reports are compiled based on secondary market research. Secondary research is information gathered from previously published sources. Our reports are
solely based on information and data acquired from national and international statistical offices, industry and trade associations, business reports, business and
company databases, journals, company registries, news portals and many other reliable sources. By using various sources we ensure maximum objectivity for
all obtained data. As a result, companies gain a precise and unbiased impression of the market situation.
 Cross referencing of data is conducted in order to ensure validity and reliability.
 The source of information and its release date are provided on every chart. It is possible that the information contained in one chart is derived from several
sources. If this is the case, all sources are mentioned on the chart.
 The reports take into account a broad definition of B2C E-Commerce, which might include mobile commerce. As definitions may vary among sources, exact
definition used by the source (if available) is included at the bottom of the chart.
 Our reports include text charts, pie charts, bar charts, rankings, line graphs and tables. Every chart contains an Action Title, which summarizes the main
idea/finding of the chart and a Subtitle, which provides necessary information about the country, the topic, units or measures of currency, and the applicable time
period(s) to which the data refers. With respect to rankings, it is possible that the summation of all categories amounts to more than 100%. In this case, multiple
answers were possible, which is noted at the bottom of the chart.
 Reports are comprised of the following elements, in the following order: Cover page, preface, legal notice, methodology, definitions, table of contents,
management summary (summarizing main information contained in each section of report) and report content (divided into sections and chapters). When
available, we also include forecasts in our report content. These forecasts are not our own; they are published by reliable sources. Within Global and Regional
reports, we include all major developed and emerging markets, ranked in order of importance by using evaluative criteria such as sales figures.
 If available, additional information about the data collection, for example the time of survey and number of people surveyed, is provided in the form of a note. In
some cases, the note (also) contains additional information needed to fully understand the contents of the respective data.
 When providing information about amounts of money, local currencies are most often used. When referencing currency values in the Action Title, the EUR
values are also provided in brackets. The conversions are always made using the average currency exchange rate for the respective time period. Should the
currency figure be in the future, the average exchange rate of the past 12 months is used.
 The reports include mainly data from the last 12 months prior to date of report publication. Exact publication dates are mentioned in every chart.

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METHODOLOGY (2 OF 2)
 This report covers the B2C E-Commerce market in Kazakhstan.
 The report starts with an overview of development of B2C E-Commerce in the respective country and international comparisons.
 Next, the “Trends” section provides an overview of the related market trends, such as M-Commerce and Cross-Border B2C E-Commerce.
 The section “Sales & Shares” includes the development of B2C E-Commerce sales, including historical sales and a forecast. Furthermore, this section shows
information about B2C E-Commerce’s share of the total retail market.
 In the “Users & Shoppers” section, a review of the development of Internet penetration is included. Moreover, a ranking of online activities of Internet users,
including online shopping, is provided.
 Afterwards, the section “Products” shows the leading product categories purchased online.
 The next two sections, “Payment” and “Delivery”, cover information related to delivery and payment methods most used by online shoppers. With regard to
payment, data on online payment transactions with bank cards, such as number and value of transaction, is included.
 Finally, the “Players” section includes information about the leading B2C E-Commerce players, ranked by sales.

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DEFINITIONS
 B2C E-COMMERCE
the sale of products (and services) through electronic transactions via the Internet from businesses to
consumers.
 B2C E-COMMERCE SALES the total sales generated on the B2C E-Commerce market in a certain country or region.
 M-COMMERCE
M-Commerce, also called “Mobile Commerce”, means the sale of products (and services) through electronic
transactions via mobile devices, such as mobile phones, tablets and smartphones.
 CROSS-BORDER B2C E-COMMERCE
the sale of goods (and services) directly to consumers in other countries, with orders made online through
foreign online shops and delivered from the country where the foreign shop is based or from a central logistics
facility, i.e. across the country’s borders.
 INTERNET USERS the total number of inhabitants in a certain country that regularly accesses the Internet.
 ONLINE SHOPPERS the total number of inhabitants in a certain country or region that participates in B2C E-Commerce.
 ONLINE PAYMENT
transfer of money made over the Internet following a consumer’s payment command, includes payments for
product and service purchase in E-Commerce and M-Commerce.
 ONLINE CLASSIFIEDS
an online platform, where both consumers and businesses can publish small advertisements about the sale of
goods and services.
 GROUP BUYING/DAILY DEALS
an online platform, where both consumers and businesses can publish small advertisements about the sale of
goods and services.
The following expressions and definitions are used in this B2C E-Commerce market report*:
Note: *the definitions used by the original sources might differ from the ones stated on this chart; the exact definition used by each source, where available, is included on the respective
charts

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TABLE OF CONTENTS (1 OF 2)
1. Management Summary
2. Overview & International Comparisons
• Overview of B2C E-Commerce Market and Trends, February 2019
• Selected Socio-Economic Characteristics, incl. Population, in millions, GDP, in USD million, Y-o-Y Change in GDP, in %, GDP per Capita, in
USD, and GDP per Capita, PPP, in International Dollars, by Selected Countries in Central Asia & Caucasus, incl. Kazakhstan, 2019f
• Internet Penetration, in % of Individuals, by Selected Countries in Central Asia & Caucasus, incl. Kazakhstan, 2017
• Share of Individuals Using the Internet to Pay Bills or Make Online Purchases, in % of Individuals, by Selected Countries in Central Asia &
Caucasus, incl. Kazakhstan, 2017
• Financial Inclusion Indicators, incl. Financial Institution Account, Debit Card, Credit Card and Mobile Money Account Ownership, in % of
Population 15+, by Selected Countries in Central Asia and Caucasus, incl. Kazakhstan, 2017
• Logistics Performance Indicators, by Selected Countries in Central Asia & Caucasus, incl. Kazakhstan, 2018
3. Trends
• Breakdown of Internet Traffic by Device, in %, 2018
• Breakdown of Devices Used for Online Shopping, in % of Online Shoppers, 2017
• Location of E-Commerce Merchants Purchased from, in % of Internet Users, 2017 & 2018
• Cross-Border E-Commerce Transactions with Cards Issued in Kazakhstan, by Value, in KZT million, and Volume, in thousands, 2013 – 2017
• Breakdown of Products Purchased Cross-Border, in % Cross-Border of Online Shoppers, 2017
4. Sales & Shares
• Domestic Retail E-Commerce Sales, in KZT million and in % of Total Retail Sales, Domestic Wholesale E-Commerce Sales, in KZT million and
in % of Total Wholesale Sales, and E-Commerce Sales of Services, in KZT million, 2013 – 2017 & H1 2018
• Breakdown of B2C E-Commerce Sales by Goods and Services, in %, January - August 2018
• Retail E-Commerce Sales, in USD million, and Share of Total Retail Sales, 2016 - 2021f
• Total E-Commerce Sales, in USD million, and Year-on-Year Change, in %, 2017- 2019f
5. Internet Users & Online Shoppers
• Internet Penetration, in % of Individuals, 2010 - 2018
• Online Shopper Penetration, in % of Internet Users, 2017 & 2018
• Breakdown of Online Shoppers, by Age Group and Gender, in %, 2017
• Perceived Barriers to E-Commerce, in % of Internet Users, 2018
• Breakdown of Online Shoppers, by Total Online Spending, in %, 2017 & 2018

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TABLE OF CONTENTS (2 OF 2)
6. Products
• Product Categories Purchased Online, in % of Online Shoppers, 2017 & 2018
• Average Check in Online Shopping, in KZT thousand, by Product Category, December 2017 & December 2018
7. Payment
• Share of Online Shoppers Paying Online Compared to Cash on Delivery, in %, 2017
• Payment Methods Used in E-Commerce, in % of Online Shoppers, 2017 & 2018
• Number and Value of Online Payment Transactions with Bank Cards, in thousands and in KZT million, and Share of Total Bank Card Payments
Number and Value, in %, June 2018 - January 2019
8. Delivery
• Problems Encountered When Shopping Online, in % of Online Shoppers, 2017 & 2018
9. Players
• B2C E-Commerce Sales by Category of Players, in %, January - August 2018
• Overview of Top 10 B2C E-Commerce Companies, Ranked by Revenue, 2017

9. 1. Management Summary 9 – 10
2. Overview 11 – 17
3. Trends 18 – 23
4. Sales & Shares 24 – 28
5. Internet Users & Online Shoppers 29 – 34
6. Products 35 – 37
7. Payment 38 – 41
8. Delivery 42 – 43
9. Players 44 – 46
9

10. Note: based on analysis of payments of Kazakhstan users in online stores accepting payments through Yandex.Kassa; conducted between 1 and 20 December 2017 and 2018
Source: Yandex.Kassa cited by Kapital.kz, December 2018
6,3
10,6
33,7
41,0
17,2
6,6
10,3
46,8
69,1
3,8
22,4
22,4
29,3
30,3
30,4
41,6
47,9
51,9
0 20 40 60 80
Books
Clothing, Footwear and
Accessories
Food
Household Goods
Electronics, Smartphones,
Gadgets
Pet Goods
Household Appliances
Cosmetics/ Perfume
Sport Goods
December 2018
December 2017
10
in KZT thousand
“Sport Goods” was the product category with the highest average
E-Commerce check in Kazakhstan in December 2018.
Kazakhstan: Average Check in Online Shopping, in KZT thousand, by Product Category, December 2017
& December 2018
Overview Sales & Shares DeliveryProductsUsers & Shoppers PlayersPaymentTrends

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Online Stores
61,8%
Electronic Trading
Platforms
35,8%
Information and Advertising
Electronic Platforms
2,4%
Online stores generated the largest share of B2C E-Commerce sales
in Kazakhstan between Jan. to Aug. 2018, reaching 61.8%.
Kazakhstan: B2C E-Commerce Sales by Category of Players, in %, January - August 2018
Note: may not add up to 100% due to rounding
Source: Infromburo.kz cited by The Astana Times, September 2018
Overview Sales & Shares DeliveryProductsUsers & Shoppers PlayersPaymentTrends

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